Personal loans are unsecured loans that keep your life on track when you have a shortage of money. And, as far as availing this credit facility is concerned, there are many factors like age, monthly income, monthly expenses, credit history, the category of your employer, savings, etc that lenders generally take into account before offering the same. Moreover, one of the important factors out of these is a CIBIL Score.
If we talk more about the same, it is nothing but a three-digit numeric summary that shows the creditworthiness of an applicant. It reflects the overall financial journey of an individual, basically the past record. And, if an individual is having a bad CIBIL score, i.e. below 650 due to a delay or default in the payment, in such cases, his personal loan application is going to have a direct impact.
So, if you are someone who wants to avail a personal loan but don’t know how to get the same with a poor credit score, we are here to help. Yes, read this post below to know some effective measures that will help you to get this unsecured credit facility even with a bad score.
How to Get a Personal Loan with Low CIBIL Score
Look Out for a Reliable NBFC
If your score is poor then you need not to worry as there are a plethora of NBFCs available which are ready to offer you this unsecured credit facility. Yes, these Non-Banking Financial Companies offer a loan to such applicants but usually at a higher interest rate. Well, which ultimately means your loan repayment burden will increase but on the other side, your varied needs can be fulfilled as you can get the loan.
Add a Co-applicant
Your bad credit score doesn’t stop you from availing a personal loan as you can apply for this credit facility by involving a co-applicant. If a co-applicant is having a good score, there are higher chances that you can get this loan. Of course, you will need to ask the other applicant beforehand for a complete KYC process. In fact, you also need to cross check the same with your lender, whether your lender agrees to the same clause or not. Generally, many lenders agree to the same but it is advisable to double check the same.
Request Your Existing Lender
If you have been a reliable customer, someone who has maintained the fruitful terms with the bank, you can raise a request to avail a personal loan. Even though your score is bad but generally banks don’t want to lose their existing customers so requesting for the same might work in your favour. There are higher chances that you can get the loan at higher interest rates or there are some other conditions that your bank will put in front of you but there is no harm in trying.
Show that Your Income is Good Enough for Repayment
If an individual is earning a good income or he/she is having an additional source of income, a lender may consider your application for a personal loan even with a low score. With a good income, you can easily manage to repay your loan in the future, which of course, many lenders lookout in an applicant before offering the loan. Apart from a steady income, if you have a stable job, lenders are more likely to grant you a personal loan despite a poor cibil score.
Go for a Secured Personal Loan
Generally, personal loans are unsecured but there are many lenders that offer secured loans also. Yes, while availing the secured personal loan, you need to give a collateral/security to the bank and because of the same, there are chances that a lender can give away the loan to you even if your score is bad.
So, there is no need to be disheartened if you have a low cibil score because availing a personal loan is possible if you follow the above tips.